Sports Development & City Leisure

ITEM NO. 3A,B AND C REPORT OF THE ECONOMIC DEVELOPMENT SECTION

TO THE ECONOMIC & COMMUNITY SAFETY SCRUTINY COMMITTEE MONDAY 6TH OCTOBER 2003

TITLE: ACHIEVEMENTS & PRIORITIES OF THE ECONOMIC DEVELOPMENT SERVICE

RECOMMENDATIONS: The following reports be noted: 1. Economic Development Annual Report 2002 / 2003 2. Economic Development Best Value Final Report & Executive Summary (Previously Circulated and discussed in depth) 3. Pledge 5 Progress Report (April 2002 – June 2003)

EXECUTIVE SUMMARY: The attached documents are a summary of economic development activity to date. The Best Value reports have been discussed at previous Scrutiny Committee meetings; therefore the attached are a comprehensive catalogue of activity and findings. The Pledge 5 report summarise the progress to date (June 2003) against agreed targets working towards building stronger communities. The Pledge is delivered by a combination of directorates, which is discussed in the report. The context of these reports will be visually presented at this meeting.

BACKGROUND DOCUMENTS : (Available for public inspection) Economic Development Best Value Review – Service Profile Economic Development Best Value Review – Stage 2 Report Salford’s Economic Development Strategy 2001 – 2004

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 1 CONTACT OFFICER : Stuart Kitchen 793 3441 Becky Edwards 793 2926

WARD(S) TO WHICH REPORT RELATE(S) : All

Economic Development IN Salford 2002/2003 Annual Report of the Economic Development Section

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 2 D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 3 Table of Contents

Introduction

Key Achievements

Encouraging Investment in the City

Supporting Business Development

Enabling Local People to Achieve their Full Potential

Future Developments

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 4 Welcome to the 2002/2003 Annual Report for the Economic Development Section of Salford City Council.

The Economic Development Section promotes the generation of wealth in the City of Salford through assisting business growth and start-ups, encouraging investment and promoting employability.

This report outlines the key achievements and highlights specific examples of the Economic Development Section’s contribution to making Salford a world-class business location.

Progress can only be made through attracting investors, supporting the existing business community and ensuring that local people have the knowledge and experience to benefit from emerging employment opportunities.

Beginning with the key achievements of Economic Development Section, the report is broken down into the following three sections:

 Encouraging investment in the City, including results and case studies of our work with inward investors  Supporting business development, focusing on the financial assistance offered to businesses  Enabling local people to achieve their full potential, outlining the achievements of the Employability Team and their work with partners to create and maintain a healthy labour market

The Economic Development Section continues to play a key role in fulfilling the ‘Economically Prosperous City’ theme of the Council’s Community Plan and continues to forge and strengthen links between the Council, partners, businesses and residents.

Councillor John Merry, Leader, Salford City Council

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 5 KEY ACHIEVEMENTS FOR 2002/2003

 Enterprising City Award received for nominating the greatest number of companies in the national Inner City 100 Awards  595 business enquiries received  468 jobs created  203 jobs safeguarded  1,013 people assisted into employment  Salford Employment Plan launched in September 2002  £306,338 secured to support the delivery of the Salford Employment Plan and formation of a dedicated Employability Team  9 companies attracted to Salford with MIDAS assistance, including 5 new investors  3 companies attracted to Salford with Business Liaison Team assistance, including 1 new investor  434,000 sq ft of floor space newly occupied in 2002  5 Enterprise Grants awarded to local businesses totalling £133,050, matching £774,550 of private sector contributions and creating 36 additional new jobs  3 Regional Selective Assistance Grants awarded totalling £1,985,000, matching £1,971,000 of private sector funding, creating 278 new jobs and safeguarding 45 jobs

Irwell, Economic Development Zone (EDZ)

Salford City Council in conjunction with Manchester City Council has formed the Irwell EDZ Partnership. An Economic Development Zone is an area receiving substantial European funding to develop activities that will add to regional competitiveness and create employment. The newly formed partnership has been successful in obtaining £14m of European funding for the EDZ, part of which comprises the Chapel Street area of Salford. The five-year programme includes the creation of 6,000 jobs across the area, plans to develop land at Chapel Wharf and a partnership with Salford University to create a new media quarter of national significance based around its Adelphi Campus.

In progressing the Irwell EDZ, the Economic Development Section has worked extensively with the private sector using the European Regional Development Fund as an impetus for development in the Chapel Street area. Key beneficiaries of future developments will be cultural sector businesses and the community.

The Digital World Centre

Due for completion in September 2003, construction of this high-tech business centre is underway opposite the award winning ‘The Lowry’ building at Salford Quays. In

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 6 excess of £2 million has been secured from the European Regional Development Fund to support the Centre. In total it will provide over 72,000 sq ft of specialist business accommodation over eight floors with a flexible range of managed workspace, serviced offices and meeting rooms for hire. The Centre will provide a quality-working environment for high growth small and medium sized businesses in sectors such as creative/media, software/IT, and financial services.

The ground floor of the Centre will accommodate a state of the art auditorium, an Internet café and a flexible exhibition and conference space. The opening of the Digital World Centre will raise the profile of Salford in attracting companies at the forefront of digital technology.

Liverpool Road Working Group

Chaired by the Council’s Economic Development Section, the Group has recently completed a visionary document outlining both short and long term regeneration objectives and this is seen as the first step towards turning around the decline of the area. Now this has been completed future aims of the Group include:

 The development of the visionary document to include a long-term master plan  Wider community consultation  The identification and procurement of funding

Barton Strategic Site

Work contributing to the realisation of Barton as an employment site is still ongoing. Depending on the final use of the land, several infrastructure and highways issues must be resolved.

The City Council has held informal discussions with Salford Reds and Peel Holdings. Discussions with Peel Holdings have revolved around using the site to create a freight terminal and a series of office and light industrial uses, known as Port Salford.

Salford Reds have expressed an interest in using the site as a location for their new stadium as well as associated retail and leisure uses. A planning application is expected in 2003 / 2004.

Salford Community Venture

Salford Community Venture (SCV) is a charitable organisation that works with local and community groups to develop their ideas into enterprises, which provide jobs, goods or services for the community. The Economic Development Section champions SCV as having a significant role to play in the regeneration of Salford. In addition, the Section signposts enquiries to SCV and works with them through the Social Enterprise Forum.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 7 In 2002/2003 Salford Community Venture supported 16 new groups, leading to the creation of 5 full time jobs and assisting 6 residents into employment. The following case study illustrates how groups are supported.

In 2002/2003 Community Health Action Partnership (CHAP) was established to represent the community in the delivery of health, well-being and cultural services within the areas of Lower Kersal and Charlestown. CHAP will be involved in the provision of non-clinical facilities and services in two new local health centres. Salford Community Venture assisted with developing the skills of the CHAP Management Board, supported its incorporation as a company limited by guarantee and is continuing to provide support to the CHAP Management Board on business development.

Chapel Street Business Group

Chapel Street Business Group continued to hold monthly meetings throughout 2002/2003 to discuss the development and regeneration of the Chapel Street area with key agencies. The Business Liaison Team play a key role in these meetings by raising awareness of, and increasing access to, business support services.

Salford Innovation Park

The University of Salford, North West Development Agency, Salford City Council and other partners have been working together to create the Salford Innovation Park, which will form the western gateway of Knowledge Capital's Arc of Opportunity. The Arc is a geographical band stretching from Salford to Manchester containing a concentration of academic expertise, cultural assets, core commercial activity and new and growing commercial sectors.

Business, education and the community will be brought together at Salford Innovation Park to significantly enhance local business competitiveness, harness entrepreneurial potential and benefit the local community.

The focal point of the Park will be the construction of the Salford Innovation Forum on Frederick Road. The space will allow the sharing of knowledge and information, create a number of learning spaces, business units and a number of ‘pavilions’, which will house programmes in enterprise and educational development.

Export Forum and Excellence

The Salford Export Forum, organised by the Business Liaison Team and supported by Chamber Business Enterprise, provides companies with information on the assistance available to help them succeed in international markets, as well as providing companies currently not exporting potential access to export markets. In 2002/2003, 149 companies attended the Export Forums and the Export Excellence Awards Competition received 25 entries with the winners being Brand Packaging Ltd of

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 8 Pendleton, who generate over £7m annually from export markets in Europe. Trade Partners UK continue to sponsor these events with an annual donation of £2,500.

Inner City 100 Awards

Dubbed the ‘Enterprise Oscars’ by the Rt. Hon Gordon Brown, the Inner City 100 is a yearly business index, which locates and celebrates the 100 fastest growing inner city enterprises in the United Kingdom.

Introducing the awards, patron Gordon Brown declared:

“The Inner City 100 shows that even the most disadvantaged inner cities are not the enterprise ‘no go’ areas of the past, but the investment opportunities of the future.”

Four companies from Salford were named among the country’s elite at the 2002 awards:  Trident Manufacturing Ltd Light fittings manufacturer and importer  Rysons Wholesale Consumer goods wholesaler  Early Action Group Ltd Exhibition design contractor  Action Strength Ltd Recruitment and support service provider

Salford’s Business Liaison Team also received an Enterprising City Award on behalf of the City Council for sending in more nominations than any other local authority in England – 17 in total.

Expanding Boundaries

In January 2003, the Business Liaison Team successfully bid for European funding for the Expanding Boundaries Scheme. The scheme received approved funding of £1,472,000 until March 2005 and will result in refurbished business premises, job creation, the development of IT facilities and the re-use of redundant buildings for businesses.

Equal, a European Social Fund initiative, aims to test and promote new ways of combating discrimination and inequalities in the local labour market.

In March 2003, an outline proposal requesting £50,000 of Equal funding was approved in principle to fund a Salford Learning Bus. It is expected that the operation of this Learning Bus will provide a mobile facility for all members of the community to access ICT. Plans for the Learning Bus also include a facility for people to access advice and guidance about employment and training opportunities.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 9 Transport – Local Link

The Economic Development Section in conjunction with the Greater Manchester Passenger Transport Executive (GMPTE) and Salford Community Transport has developed a new transport scheme named Local Link. Local Link is a bus that runs like a taxi and will link employment opportunities in Salford Quays and Broadway with the residents of Seedley, Langworthy and Ordsall. Salford Community Transport will launch the service in September 2003.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 10 ENCOURAGING INVESTMENT IN THE CITY

Salford encourages investment into the City via financially contributing to the Manchester Investment and Development Agency Service (MIDAS) who market Salford to potential inward investors as part of the wider sub-region. In 2002/2003 MIDAS processed 166 land and property enquiries regarding Salford, Manchester, Trafford and Tameside.

As a result of these enquiries Salford was successful in attracting 9 businesses with MIDAS assistance, which lead to the creation of 444 new jobs and £17,590,000 in new investment in the City of Salford.

Two principal companies locating in Salford were JT International and Werit:

JT International

In February 2003, JT International, the world’s third largest tobacco products manufacturer, announced the opening of a new European Business Service Centre at Salford Quays. The Centre deals with accounting and European sales. The NWDA provided a Regional Selective Assistance grant of £630,000 to encourage the move. Other encouraging factors were the areas excellent geographical location, competitive costs and provision of a skilled workforce.

The establishment of JT International adds to Salford Quay’s reputation for being a high quality business location. The opening of the Centre is also expected to create approximately 100 new jobs at various levels, including accountants and financial support professionals.

Salford has attracted a £5m investment from German industrial packaging manufacturer, Werit. The company, which produces a range of intermediate bulk containers throughout Europe, has chosen Northbank Industrial Park in Irlam as their first UK production facility.

The company spent 12 months looking for a location and chose Salford due to the strong potential customer base in the North West. The new manufacturing facility will employ approximately 80 people.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 11 SUPPORTING BUSINESS DEVELOPMENT

The Business Liaison Team is the Council’s main point of contact for all business enquiries. It provides a comprehensive advice and aftercare service covering a wide range of business related issues, including advice on financial packages and assistance with business property searches. In 2002/2003 the Business Liaison Team responded to 506 enquiries, of these 316 were financial enquires.

FINANCIAL ASSISTANCE

The Business Liaison Team administers and monitors several grant schemes.

Business Security Grants

In 2002/2003, 347 security grant applications were received and 104 applications were successful. Each applicant received a full security audit by the Greater Manchester Police Crime Prevention Officer. Security grants have been funded from SRB, New Deal for Communities and the Chapel Street Business Support Package. As a result of the Business Security Grant scheme 203 jobs were safeguarded and 218 buildings were secured.

As well as administering local grant schemes, the Business Liaison Team also advises and helps secure the Enterprise Grant Scheme and the Regional Selective Assistance grants from the Department of Trade and Industry (see Key Achievements).

BUSINESS SURVEY

A survey of 523 Salford businesses was conducted for the Best Value Review. Within the survey a number of questions were asked to ascertain the potential level of investment over the coming years. The results were very promising with expected investment to total £147m in the next three years with two thirds of companies expecting their business to grow over the next two years.

The survey identified that there was a need for increased marketing from the Council’s business support services. This, and the other findings from the survey, have been incorporated into the objectives of the Economic Development Best Value Review Improvement Plans. The business survey will now be carried out on an annual basis to acquire a greater understanding of the Salford business community.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 12 ENABLING LOCAL PEOPLE TO ACHIEVE THEIR FULL POTENTIAL

The Employability Team

The City of Salford’s Economic Development Section established a dedicated Employability Team in July 2002. The Team is charged with the employability theme of the Economic Development Strategy, which incorporates the following responsibilities:

 improving skills and education, raising aspirations and achievements  reducing barriers to employment and training  enhancing the employability of local residents, particularly those experiencing barriers to employment  maximising the benefits of investment in the City of Salford for residents

The Employability Team provides a combination of roles, including:

 “front line” services to businesses and residents via the Employment Charter Team  advice and support to internal and external partners in improving provision of employability services in Salford  co-ordination of the Salford Employment Plan, a strategy to enable local people to achieve their full potential

Jobshops

The Employability Team contract-manage the Salford Jobshops, which are delivered by the Employability & Regeneration Partnership. The Jobshops provide information, advice and guidance regarding employment and training, as well as job search facilities and support. Jobshops’ achievements for 2003/03 include:  885 Salford residents assisted into jobs  573 residents helped into education and training  In October 2002, a sixth Jobshop opened in Eccles Local Public Service Agreement (LPSA)

The LPSA is a package of targets agreed by government to deliver extra improvements in key services to local people. The Employability Team is responsible for co-ordinating Salford City Council’s LPSA target 6. This LPSA will provide assistance for those most distanced from the labour market. Five key client groups will be targeted who often face multiple barriers to employment:  workless families  older workers (aged 55+)  individuals with a disability  individuals from a Black or Minority Ethnic background

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 13  individuals who have a drug or alcohol problem

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 14 EMPLOYABILITY ACHIEVEMENTS

Salford Employment Plan Launch

The Salford Employment Plan is a strategic framework for developing activities targeted at raising the employability of Salford’s residents. The Plan was launched on 6th September 2002 with representation from local employers, trade unions, Jobcentre Plus, Employment & Regeneration Partnership, Learning & Skills Council, NWDA, Manchester Enterprises, Chamber Business Enterprises, Salford & Trafford Health Authority, Salford Partnership and Ian Stewart MP. Target groups identified in the Plan for support include:

 individuals furthest from employment who need significant support to help them enter work (such as people with disabilities or parents)  those ready for work, but currently unemployed  those in “first step” occupations

The Employability Steering Group manages delivery of the Salford Employment Plan. Sub-groups tasked with developing targeted strategies, which will supplement the Employment Plan, further support the Steering Group. These include:  Basic Skills  Employer Liaison  Welfare to Work

Salford Employment Charter

In 2002 / 2003 the Charter project, which aims to increase employment and training opportunities for local unemployed people, accomplished the following:  89 businesses advised;  16 new companies signed up to the Charter;  66 vacancies advertised;  128 Salford residents assisted into employment, of which;  78 individuals received a wage subsidy;  24 new jobs created.

To achieve continued funding the Charter has refocused to enable local businesses to recruit and train local people and to help Salford’s existing workforce to ‘upskill,’ by providing financial assistance to employers and employees through the Recruitment & Training Support Grant and Workforce Development Grant. The new Charter project will run up until 2008 funded by £323,000 of single regeneration budget funds.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 15 SkillCity

The UK Skills Show took place at Europe’s largest temporary exhibition venue, SkillCity, at Salford Quays on 13th – 16th November 2002, attracting over 93,000 young people over 4 days.

SkillCity was a celebration of skills, which motivates and inspires young people to learn new skills, develop an awareness of the opportunities available in a wide range of employment and training, as well as encouraging them to aspire to excellence. The Employability Team acted as volunteers for the duration of the event, helping to promote careers within local government to hundreds of young people.

Basic Skills

Research for the Employment Plan demonstrated that Salford has significant issues around skills and qualifications. Low levels of literacy and numeracy in Salford exceed sub-regional and national averages, confirming that Basic Skills present a key barrier to employment in the City. Currently, achievements in addressing these issue include:

 Establishment of a Basic Skills Sub Group (in partnership with the Lifelong Learning Partnership) which secured funding to research the current level of quality and provision and to develop a Basic Skills Strategy. In February 2002, the Basic Skills Agency began the above research, which resulted in a number of recommendations to be taken forward which are included in the future developments section at the end of this report.

Salford Construction Partnership (SCP)

The Employability Team has led on the formation of a ‘Construction Partnership’ to meet the growing challenge presented through inward investment and construction in the City. This group is reviewing Salford’s capacity to provide construction training within existing facilities. Initial research has shown that Salford has some capacity to extend existing provision and there may be a need to build a new training facility in the future. Already involved in the Salford Construction Partnership and supporting the project are: Jobcentre Plus, Greater Manchester Learning and Skills Council, Construction Industry Training Board, Salford College, Salford University, Carrillion, Silverdale Vocational Centre, Salford Lifelong Learning Partnership, City of Salford, North West Development Agency, Manchester Construction Partnership, Greater Manchester Police, Manchester Enterprises Group, Connexions, New Deal for Communities and the Local Strategic Partnership.

The Construction Partnership will seek to pool resources to invest in improving access to construction training and increasing the level and range of provision. Where possible investment will be targeted at extending the capacity of existing providers to

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 16 respond to the training and skills challenge, with the potential development of bespoke training facilities at a later date. Future Developments

The following items give a sample of the Economic Development Section’s activities in 2003/2004:

Economic Development Strategy - A new Strategy will be produced for 2004 with plans for investment, employment initiatives and work with business. The Economic Development Forum will act as the main driver in the development of the strategy and four sub-groups will address the specific themes of the Strategy:  Investment in the City Working Group  Business Development Working Group  Social Economy Working Group  Employability Steering Group

Basic Skills will continue to be a focus of activity in 2003/04, key recommendations arising from completed research include: . Greater strategic planning and co-ordination of provision . Increased efforts to engage and retain learners through new and innovative projects and programmes . Promote and improve levels of achievement . Review and develop the infrastructure to increase the quality as well as the quantity and range of provision . Recruit a ‘driver’ for basic skills strategy locally through employment of a Basic Skills Co-ordinator

Salford Construction Partnership - As a pathfinder for the Government’s Housing Market Renewal programme, Salford is set to benefit from extensive investment in housing renovation and re-build over the next 10 years. Coupled with a number of other key developments in Salford, such as the health investment programmes “SHIFT and LIFT” and new development by Greater Manchester Police, Salford is faced with an extensive and exciting challenge in terms of meeting a range of needs and opportunities including:

 Training/skills in construction  Employment/labour  Employer support  Co-ordination of provision to address the above

Salford City Council is helping to drive the project forward by co-ordinating the Construction Partnership, co-financing the research in conjunction with the Greater Manchester Learning and Skills Council and the Centre for Construction Excellence which forms a pivotal role in its NWDA ‘Central Salford and City Wide Economic Support’ Strategy over the next 5-10 years. An action plan for the Partnership will be drawn up for 2003/2004.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 17 Exemplar Employers

Work has started and links have been made with Salford City Council’s Personnel and Human Resources within both the PCT and NHS Hospital Trust to examine the extent to which Salford’s largest employers can share good recruitment and workforce development practice with other local employers.

Link Track Database

A comprehensive database will be installed to assist all teams within the Economic Development Section to improve customer care and contact with businesses. The database will help to identify companies in strategically important areas of the City.

Development Site Survey

A comprehensive survey of industrial sites will be undertaken in order to identify opportunities to create new development sites through consolidation or acquisition of land. The survey will result in a property portfolio, which will market large and small- scale development sites.

Knowledge Capital

Manchester: Knowledge Capital is an initiative that aims to capitalise on this unprecedented opportunity, creating a dynamic and sustainable economic powerhouse centred on knowledge and new ideas – a Knowledge Capital.

Situated on ‘Manchester’s Left Bank’, Salford brings a wealth of assets to Manchester: Knowledge Capital, from its waterways and culture infrastructure to its world-class university and its tradition of creativity and innovation. Salford will make a significant and distinctive to creating and spreading wealth, opportunity and, most of all, knowledge, across the conurbation and beyond.

D:\Docs\2018-04-30\0b8c6cfa731a36515d33c628e7480144.doc 18